diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 1769a71e76..213762b129 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3446.1.0+nightly-20230119-2100
-FLATCAR_VERSION_ID=3446.1.0
-FLATCAR_BUILD_ID="nightly-20230119-2100"
+FLATCAR_VERSION=3446.1.1
+FLATCAR_VERSION_ID=3446.1.1
+FLATCAR_BUILD_ID=""
 FLATCAR_SDK_VERSION=3446.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 0ca2315ee1..5d57d40cf1 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 0ca2315ee12da6b1790aa163db1ac9848c114f17
+Subproject commit 5d57d40cf199b918699219ba7e4da68c18d0c9f1